* FTSEurofirst 300 up 0.5 pct, FTSE 100 up 0.8 pct
* Main indexes bounce from “oversold” territory
* easyJet leads gainers after raising profit forecast
By Francesco Canepa
LONDON, Oct 3 (Reuters) - European equity indexes bounced from “oversold” territory on Friday after their steepest falls in several months, with British low-cost airline easyJet the biggest gainer after raising its profit forecast.
Shares in easyJet rose 5 percent to the top of the pan-European FTSEurofirst 300 index, which was up 0.5 percent at 1,342.23 points at 0735 GMT, rebounding after its steepest one-day drop in 15 months.
European shares had come under pressure on Thursday after the European Central Bank gave fewer details than the market had expected about its plan to buy secured debt, which is aimed at shoring up inflation and economic growth in the sluggish euro zone economy.
Britain’s FTSE and France’s CAC rose 0.8 percent, although both indexes were still on track to post losses of more than two percent for the week. The German stock market was shut due to a national holiday.
The FTSE and the CAC closed in “oversold” territory on Thursday based on their 7-day Relative Strength Index, a momentum indicator which compares the magnitude of recent gains to recent losses.
Investors were now set to look at U.S. non farm payrolls data, due at 1230 GMT, for indications about the strength of the world’s largest economy and the likely path of the Federal Reserve’s monetary policy.
The market has been weighing the prospect of stronger corporate profits if the U.S. economy picks up the pace against the threat of any early rise in U.S. interest rates at a time when many European and emerging market economies show signs of fragility.
Analysts polled by Reuters expect U.S. employers to have hired 215,000 workers in September, up from a disappointing 142,000 in August.
“A strong NFP report might initially spark concerns that rates might rise quicker than expected,” said Markus Huber, a senior trader at Peregrine & Black, who was betting on a short-term rebound on the FTSE.
“A weak job report wouldn’t bode necessarily well for stocks today, however, especially after the August report came in substantially lower than expected and fears would be set off that a new trend with lower job growth is in the making.”
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today’s European research round-up
Editing by Alison Williams